Payroll Processor Salary
Payroll Processors in the United States are largely female. The average salary of the entire group is approximately $15.81 per hour. Experience level and the particular city each impact pay for this group, with the former having the largest influence. Job satisfaction for Payroll Processors is high. Although a majority have medical coverage and slightly more than half have dental coverage, one-third claim no health benefits at all.
Job Description for Payroll Processor
Payroll processors process payroll information for employees within their organization, which may include a large number of employees at multiple locations. Duties include collecting, entering, and maintaining data for weekly or bi-weekly processing, recording data for accounting reports, conducting ACH processing for direct deposits and performing some clerical duties. A payroll processor generally works with several departments or colleagues to send and receive data, so they must be prepared to work within their office team and with clients.Read More...
A high school diploma or equivalent is generally the minimum educational requirement for this position, although a postsecondary degree may be preferred. Three to five years of experience in payroll or a related field is generally required or preferred as well. Payroll processors must be able to enter data quickly and accurately using basic office software, including spreadsheet software. They also must have basic knowledge of related state and federal laws regarding payroll, as well as good interpersonal skills and problem-solving abilities. Other qualities required of candidates include the ability to pay strong attention to detail, organizational and communication skills, the ability to work effectively on their own, and the ability to work well in a team setting.
Payroll Processor Tasks
- Calculate, key, total, and balance substitute payrolls.
- Create reports for information pertaining to payroll.
- Handle voluntary and involuntary deductions.
- Enter changes to employee payroll records.
- Communicate with employees regarding changes in salary, benefits, etc.
Common Career Paths for Payroll Processor
Though not the most common occurrence, Payroll Processors sometimes become Senior Payroll Processors, where the average income is $47K per year. The most common next step for a Payroll Processor is to become a Payroll Specialist or a Payroll Administrator. The former position pays an additional $4K per year on average, and the latter position pays $5K more per year.
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Popular Skills for Payroll Processor
Payroll Processors report using a wide range of professional skills. Most notably, skills in Payroll Administration, ADP Payroll System, Payroll Tax Compliance, and Microsoft Office are correlated to pay that is above average, with boosts between 6 percent and 15 percent. The majority of those who know Microsoft Excel also know Microsoft Office.
Pay by Experience Level for Payroll Processor
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Respondents with less than five years' experience take home $33K on average. In contrast, those who have been around for five to 10 years earn a noticeably higher average of $37K. People with 10 to 20 years of experience make an average of about $41K in this role. Payroll Processors who have stuck around for more than two decades see earnings that are no higher than those of folks who have worked for 10 to 20 years.